RIGHTS OF AN UNPAID SELLER

Before I start with the main topic, let me give you a small intro about who is an ‘unpaid seller’. According to section 45 (a) of Sale of Goods Act, 1930, a seller is called an ‘unpaid seller’ when either he has not been paid the whole price or the buyer has failed to meet at maturity the bill or any other negotiable instrument which was accepted by the seller as conditional payment. The Act provides the seller his rights in two ways; rights against the goods and rights against the buyer. The seller may use three ways under right of goods; right of lien, stoppage in transit and resale. On the other hand, the seller may again use three ways against the buyer; suit for price, suit for damages and suit for interest.

RIGHT AGAINST THE GOODS

RIGHT OF LIEN

under Sale of Goods Act, 1930, the seller has a right on goods for the price while he is in possession until payment. The seller can exercise his right of lien when either the goods have been sold without stipulation of credit or when the goods have been sold on credit but the term of credit has expired or when the buyer becomes insolvent. However, the unpaid seller may lose this right if he delivers the goods to a carrier or to the buyer without reserving the right of disposal or where the buyer or his agent lawfully obtains the possession of the goods or when the seller waived his right of lien.

RIGHT OF STOPPAGE IN TRANSIT

When the unpaid seller has parted ways with the goods and he learns that the buyer has become insolvent, then, the seller can ask the carrier to return the goods or if the carrier is in a position that they cannot return, then, the seller can ask them to not deliver the goods at all.

RIGHT OF RE-SALE

This right is used by the seller as a last option when the buyer does not pay and the goods are of perishable nature. In such a case, the buyer need not be informed and the seller can re-sale the good of perishable nature plus get some money as well.

RIGHT AGAINST THE BUYER

SUIT FOR PRICE

The first thing when the buyer refuses or neglects to pay for the goods, is that the unpaid seller can sue him for non-payment if the goods has passed to the buyer.

SUIT FOR DAMAGES

Where the buyer wrongfully neglects or refuses to accept & pay for the goods, the seller may sue him for damages for non-acceptance. Where the buyer repudiates the contract before the date of delivery, the seller may treat the contract as rescinded & sue for the damages.

SUIT FOR INTEREST

Where there is a specific agreement between the seller & buyer as to the interest on price of the goods from the date on which payment becomes due, the seller may recover interest from the buyer.

Aishwarya Says:

I have always been against Glorifying Over Work and therefore, in the year 2021, I have decided to launch this campaign “Balancing Life”and talk about this wrong practice, that we have been following since last few years. I will be talking to and interviewing around 1 lakh people in the coming 2021 and publish their interview regarding their opinion on glamourising Over Work.

If you are interested in participating in the same, do let me know.

Do follow me on FacebookTwitter  Youtube and Instagram.

The copyright of this Article belongs exclusively to Ms. Aishwarya Sandeep. Reproduction of the same, without permission will amount to Copyright Infringement. Appropriate Legal Action under the Indian Laws will be taken.

If you would also like to contribute to my website, then do share your articles or poems at adv.aishwaryasandeep@gmail.com

We also have a Facebook Group Restarter Moms for Mothers or Women who would like to rejoin their careers post a career break or women who are enterpreneurs.

We are also running a series Inspirational Women from January 2021 to March 31,2021, featuring around 1000 stories about Indian Women, who changed the world. #choosetochallenge

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